Bitcoin rushed higher and then fell below the $50,000 level! PlanB says it doesn't care about short-term trends

Bitcoin (BTC) fell sharply from its recent high on Tuesday (28th) and fell below the $50,000 mark. The data shows that the estimated leverage ratio of Bitcoin has hit a record high, which means that the volatility may increase in the future.

At the same time, the well-known analyst PlanB said that his floor price model will no longer be valid if it does not reach $100,000 by the end of the year, but he also emphasized that he is not very concerned about the short-term trend of Bitcoin.

Bitcoin first rose on Tuesday, Beijing time, and then continued to fall. It originally stood at $52,000 at 1 o'clock and reached a nearly three-week high, but then quickly weakened. It fell below $49,000 at noon, and then the decline slightly decreased. . As of 13:32 Beijing time, Bitcoin reported $49,068, a 24-hour drop of 3.7%.

Online data shows that Bitcoin's leverage ratio has hit a record high, which increases the possibility that its price may be corrected quickly to remove all excess leverage.

An analyst posted on CryptoQuant pointed out that based on the estimated leverage index of all exchanges, it calculates the value of open positions divided by the reserves of derivatives exchanges to calculate the current level of risk taken by investors. When the indicator rises, it means that investors are assuming more leverage.

The chart shows that Bitcoin's leverage ratio has been rising recently and then hovering near historical highs. Quantitative analysts believe that such a high ratio value may mean that the price of Bitcoin will soon pull back, thereby eliminating all excess leverage.

PlanB, which successfully predicted the price of Bitcoin in the past few months, estimated that the end-of-year price was $135,000, but it was almost impossible to achieve it, making his predictions inaccurate for the second consecutive month.

PlanB recently accepted an exclusive interview with Youtuber and Dutch analyst MadelonVos. He did not care much about the short-term trend of Bitcoin.

PlanB previously said that if the prediction fails, then this model may fail. However, he currently believes that as long as Bitcoin continues to follow a linear path, the S2F model will continue to be effective, and he will focus on forecasting the next cycle.